Intro to Fintech Semester one Review

What is the primary purpose of a budget?

• To track income only

• To allocate spending and savings effectively

• To reduce taxes

• To invest in stocks

Which of the following is an example of a fixed expense?

• Grocery bills

• Rent payments

• Utility bills

• Entertainment expenses

What does APR stand for?

• Annual Personal Rate

• Annual Percentage Rate

• Annual Payment Ratio

• Annual Payment Rate

Which app is commonly used for personal finance management?

• Spotify

• Mint

• Slack

• Instagram

Which of these is an advantage of digital financial literacy?

• 1. Reduced cybersecurity risks

• Improved understanding of financial tools

• 1. Elimination of financial fraud

• Lack of financial regulations

What is the main goal of investment management?

• To spend income efficiently

• To grow wealth over time

• To avoid taxes

• To increase debt

What does "diversification" mean in investing?

• Investing in a single type of asset

• Spreading investments across different asset types

• Selling all investments during a market dip

• Focusing on high-risk stocks only

Which of these is an investment vehicle?

• Mutual funds

• Credit cards

• Bank savings account

• Fixed expenses

What is the role of a robo-advisor in investment management?

• A manual tool for analyzing stocks

• Automated software for managing investments

• A physical device used for stock trading

Which term refers to the process of earning interest on both the initial investment and previously earned interest?

• Simple interest

• Compounding

• Capitalizing

• Depreciating